The internet has made managing finances easier than ever, but it has also opened the door for increasingly sophisticated scams that can target even the most vigilant individuals. At Mendel Money Management, we believe in proactive protection—so today, we’re diving into some of the most prevalent financial scams and how you can safeguard yourself and your loved ones.
1. Romance Scams: When Love Costs You Money
Online dating has become a common way to meet people, but unfortunately, scammers have found a way to exploit those seeking love. Romance scams involve fraudsters building relationships online, only to manipulate victims into sending them money.
How It Works:
- The scammer creates a fake profile, often using stolen photos.
- They form an emotional connection, sometimes over weeks or months.
- A sudden financial emergency arises, and they request money—often through wire transfers, gift cards, or cryptocurrency.
How to Protect Yourself:
- Be cautious of profiles created recently.
- Reverse image search their profile picture with tools like DupliChecker or TinEye to check for duplicates online.
- Never send money to someone you haven’t met in person.
- Discuss your online relationship with a trusted friend or advisor for an outside perspective.
2. Government Impersonation Scams
Scammers posing as government officials—from the IRS, Social Security Administration, law enforcement, or even highway toll collectors—use fear tactics to steal money and personal information. This is so common it is even a comedic trope in Hollywood films where, for example, the child of an aging parent learns their father or mother sent his Social Security number to someone claiming to be the prince of Nigeria in order to receive 1 million dollars.
How It Works:
- You receive a call, email, text message or letter claiming you owe back taxes, your benefits are suspended, or you have an arrest warrant if you don’t pay your highway tolls, for example.
- They demand immediate payment via wire transfer, prepaid debit card, or cryptocurrency.
- They may spoof phone numbers to appear legitimate. They may even send links to fake websites to collect your payment and information.
How to Protect Yourself:
- The IRS and government agencies will never call demanding immediate payment.
- Toll collectors will never text you to pay your bills online or threaten to put out a warrant for your arrest as a result of not paying now.
- Never provide personal information over the phone unless you initiated the call to a verified government number.
- If you receive a suspicious message, verify it directly through the agency’s official website.
3. Tech Support & Fraud Scams
Tech support scams prey on fear, tricking people into thinking their computer or phone has been compromised.
How It Works:
- A pop-up warning claims your device is infected and instructs you to call a number for help.
- A scammer posing as a tech support agent requests remote access to “fix” the issue.
- They install malware or ransomware, locking you out of your device until you pay a fee.
How to Protect Yourself:
- Legitimate tech companies never send unsolicited warnings asking you to call a number.
- Never grant remote access to an unknown caller.
- If you receive a suspicious message, close the pop-up and scan your device using reputable antivirus software.
4. Business Email Compromise (BEC) Scams
BEC scams target individuals and companies by impersonating executives, vendors, or payroll departments to trick employees into transferring funds or sharing sensitive data. They may even ask you to “send money to yourself” but only after changing your phone number in your account, hence getting you to send money to someone else.
How It Works:
- A scammer gains access to a business email or creates a similar-looking fake email.
- They send urgent requests for wire transfers or ask for payroll updates.
- Victims unknowingly send funds or provide personal information, leading to identity theft or financial loss.
How to Protect Yourself:
- Verify financial requests by calling the person directly using a known phone number.
- Check for minor email address variations that may indicate spoofing.
- Be cautious of urgent language pushing immediate action.
How to Stay One Step Ahead of Scammers
- Be Skeptical of Unsolicited Requests – Whether it’s a phone call, email, or text message, always verify before taking action.
- Use Multi-Factor Authentication (MFA) – Adding an extra layer of security can prevent unauthorized access to accounts.
- Monitor Financial Accounts Regularly – Review your bank and investment statements for any unusual transactions.
- Educate Your Family & Friends – Many scams target seniors and vulnerable individuals. Discuss these threats with your loved ones.
At Mendel Money Management, we’re committed to keeping you informed and financially secure. If you ever encounter a suspicious financial request, reach out to us before taking action. Staying vigilant today can save you from financial loss tomorrow.
